News in English     | 01.10.2019. 16:30 |

FBiH presents potentials in the four areas for future oil and gas exploitation

FENA Vernera Jakupović

SARAJEVO, October 1 (FENA) - Presentation of the potential of the blocks for which a concession for oil and gas exploration and exploitation in the Federation of Bosnia and Herzegovina is going to be announced, the legal and fiscal conditions, was held today in Sarajevo at the Federation of BiH Chamber of Commerce, organized by the FBiH Ministry of Energy, Mining and Industry, the FBiH Institute of Geology and the consulting company IHS Markit from London.

The aim of the presentation was to inform the general public about this project of great importance before launching a public call.

At a press conference after the presentation, Minister Nermin Džindić said that the tender would be announced for four blocks for exploration of potential oil and gas sites: the Dinaric area, the territories of the West Herzegovina and Herzegovina-Neretva cantons, the Tuzla basin and the Tuzla Canton from the Spreča River and the Posavina 1 and Posavina 2 blocks in the areas of ​​Odžak and Orašje.

Promotions like the one held today in Sarajevo are planned also to be held in London, Ankara and Budva.

It is due to take place in London next week, followed by a call for tenders, which is expected to be completed by mid-February 2020, and the selection of a strategic partner or oil business is planned for January 2020.

The potential of finding oil does not only mean multi-level developmental significance but also implies the basis for the development of other industries, new jobs, a number of infrastructure and other projects.

Minister Džindić noted that in 2015, the FBiH Government insisted on he changes to the entity Law on Oil and Gas Exploration and it has incorporated provisions for the selection of an internationally accredited company and the need to have public calls.

Džindić reminds that the law also stipulates the distribution of revenues from the eventual concession in such a way that 23 percent belongs to the budget of the Federation of BiH, 18 percent to the municipality on whose territory the concession is granted, 19 percent to the canton, 15 percent to the budgets of all other cantons, 23 percent to all others municipalities, and two percent to the FBiH Oil and Gas Exploration Fund.

The deadline for oil and gas exploration is six years, although it may be shorter in the case of satisfactory results, and the exploitation concession is granted for 25 years with the possibility of extension to 12.5 years under certain conditions.

Jim Thomas from London-based IHS Markit, who also spoke at the press conference, stresses that this is an international company that worked with the FBiH Ministry of Energy, Mining and Industry to prepare today's promotion in Sarajevo and the upcoming one to be held in London next week.

(FENA) S. R.

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